HS Code:
Molasses resulting from the extraction or refining of sugar (HS Code: 1703) is a viscous byproduct of the sugar production process. It is primarily used as a sweetener, in the production of rum and other alcoholic beverages, as animal feed, and in industrial applications such as the production of bioethanol. This category includes cane molasses, beet molasses, and other types of molasses derived from sugar refining. Global trade in molasses is influenced by agricultural production capacities, sugar industry dynamics, and demand for alternative sweeteners and biofuels.
Total Trade Volume
Approximately 6.5 million metric tons
Data from 2022
Source
International Trade Centre (ITC) Trade Map and UN Comtrade Database
1.2 million metric tons
18.5% of total trade of total trade
Increasing
1.1 million metric tons
16.9% of total trade of total trade
Stable
0.8 million metric tons
12.3% of total trade of total trade
Increasing
0.6 million metric tons
9.2% of total trade of total trade
Stable
0.5 million metric tons
7.7% of total trade of total trade
Increasing
Average Rate
6.5% ad valorem
Highest Rate
35% (applied by certain developing countries to protect domestic sugar industries)
Lowest Rate
0% (under free trade agreements such as EU-ACP or USMCA)
Rising demand for molasses in biofuel production
Increased export opportunities for major producers like Brazil and India due to global push for renewable energy sources
2021-2023
Growing use in animal feed industry
Stable demand from livestock sectors in Europe and North America, driving imports from tropical countries
2020-2022
Fluctuations in sugar production affecting supply
Variations in sugarcane and beet harvests due to climate conditions lead to inconsistent molasses availability and price volatility
2019-2023
Indiaโs push for higher ethanol blending in fuel has led to increased molasses production and exports, particularly to Southeast Asia for industrial use.
June 2023
Positive for Indian exporters; potential oversupply concerns in regional markets.
The European Union adjusted tariffs on molasses imports from non-ACP countries to balance domestic demand and protect local producers.
March 2023
Increased costs for exporters from countries without preferential trade agreements; potential shift in trade flows to ACP nations.
Severe drought in key sugarcane regions of Brazil reduced molasses output, affecting global supply chains and driving up prices.
September 2022
Short-term price spikes; opportunities for other exporters like Thailand and India to fill the gap.